As the cryptocurrency market grapples with sharp declines, Binance founder Changpeng Zhao (CZ) has made a compelling assessment of the falling Bitcoin price.
Zhao touched upon the importance of investor psychology in his assessment.
“It may be an unpopular opinion, but the best strategy is to sell during periods of maximum greed and buy during periods of maximum fear,” Zhao said, reminding that opportunities arise, especially during periods when the market enters panic mode.
Market Sentiment Deteriorates Amidst Bitcoin's Retreat
After Bitcoin retreated to $81,000, market sentiment deteriorated sharply.
With Bitcoin trading at $90,710, the Cryptocurrency Fear & Greed Index clearly reflects the deterioration in investor sentiment. As of today, the index sits at 20, falling into the “fear” category.
While this level is the same as yesterday's, it represents a significant improvement compared to last week. The index had fallen to the “extreme fear” zone last week, falling as low as 10. The index, which was again in the “fear” zone at 39 a month ago, reveals that investor sentiment has been stuck in negative territory for a long time. The picture is even more striking when comparing year-to-year: the index peaked at 84 in November 2024, at the “extreme greed” level, and then fell to the 10 level in November 2025, reaching its annual low, demonstrating the drastic shift in market sentiment.
CZ's Strategy and Current Market Conditions
CZ's message reiterates the importance of these emotional swings to investment strategies, and current market conditions support his words. Despite Bitcoin's gain of over 7% in the past week, the overall market remains subdued, prompting investors to exercise caution.